Iria

The majority of software companies now do offshore software development, but rising prices and managing far-flung teams is posing new challenges, a study has found.

Consulting company Sand Hill Group last year surveyed executives from about 50 software companies and found that offshore software development has become standard practice. Eighty-four percent of companies said they use offshore developers, an increase from about 63 percent two years earlier.

"Core software development is done offshore, not just maintenance and testing," said M.R. Rangaswami, co-founder of Sand Hill Group. "These executives said they are more reliant on offshore development than ever before."

With that reliance comes risk and even some disillusionment, Rangaswami said.

He said many software companies expected massively lower costs by hiring offshore developers. However, those companies found that prices were about 40 percent lower when all factors were included.
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Read More / Source: News.com